Next Berkshire acquisition speculation

[gfp]

36 minutes ago, MarioP said:

With MAGA there will be a lot of opportunity that will need capital to build the new production infrastructures. So what about en engineering firm? And when I began to ask myself which one Kiewit immediatly came to my mind. 

 

Luckily, Berkshire is already building the infrastructure ->

https://www.wwafcosteel.com

 

(look through Projects -> manufacturing/distribution & industrial)

Edited March 28, 2025 by gfp

[DooDiligence]

Business might be booming here too.

 

https://charterbrokerage.net

[gfp]

you know it's april fools day when you see these!

https://www.gobankingrates.com/money/business/warren-buffett-acquires-elon-musks-tesla-for-1-trillion-in-cash/

[sleepydragon]

45 minutes ago, gfp said:

you know it's april fools day when you see these!

https://www.gobankingrates.com/money/business/warren-buffett-acquires-elon-musks-tesla-for-1-trillion-in-cash/

haha. nice one. fooled my wife.

[rogermunibond]

I don't think the Mendelson family needs the liquidity and it would be bad for me as a shareholder, but Heico (HEI) is definitely a Berkshire company if they ever needed to sell.

[thowed]

@rogermunibond Agree, though Mendelson's explicity said not for sale in a recent earnings call.

Of course, doesn't mean they can't change their mind in future, but imagine it wouldn't be for a while.

[John Hjorth]

2 hours ago, rogermunibond said:

I don't think the Mendelson family needs the liquidity and it would be bad for me as a shareholder, but Heico (HEI) is definitely a Berkshire company if they ever needed to sell.

 

54 minutes ago, thowed said:

@rogermunibond Agree, though Mendelson's explicity said not for sale in a recent earnings call.

Of course, doesn't mean they can't change their mind in future, but imagine it wouldn't be for a while.

 

HEI trades according to Morningstar at P/E 79 and P/B around 11. Imagine Berkshire paying a take private premium to that. [Qualification and disclosure : Long time since I last time looked at it.]

Edited May 28, 2025 by John Hjorth

[gfp]

I had thought that maybe Berkshire had received a phone call on Skechers when it was being shopped to 3G but their merger proxy just came out and the 'Background of the Merger' narrative does not make any mention of another party like Berkshire being given a call.  Just that the advisors said the likelihood of another acquirer being willing and able to pay more than 3G was 'low.'

 

https://www.sec.gov/Archives/edgar/data/1065837/000110465925074187/tm2516935-12_defm14c.htm

[Spekulatius]

Berkshire may have to acquire CSX to merge  their BNSF subsidy to match UNP NSC merger if it indeed happens. Otherwise, BNSF could fall further behind a combined UNP- NSC and CP transcontinental offerings. Acquiring CSX won’t be cheap as the current market cap is about  $65B and Berkshire would need to pay a premium too. My guess is it might cost ~$75B to close a deal. This would take a big chunk out of Berkshires cash hoard. I don’t think Berkshire will like the Zugzwang situation as railroads currently trade at fairly high valuations. We will see how this goes  if the UNP- NSC deal indeed looks like it is going through.

[Gamecock-YT]

They could always be the seller themselves, would get stuck with a lot of CSX stock they probably wouldn't want though. 

[Spekulatius]

CSX can afford BNSF so I don’t think Berkshire could sell. They are a buyer and would need to pay or do nothing and would risk to fall behind the likes of CP or UNP/NSC which have used acquisitions to enhance their network.

I guess the other option is stock for stock merger, where Berkshire would hold the majority of shares in the combined entity and the rest remains public traded. I am not sure but that would have a tax disadvantage for Berkshire (dividend taxation) and he could not control the entire cash flow either.

Edited August 10, 2025 by Spekulatius

[gfp]

I don't think Berkshire is a seller of BNSF.  I think the most Berkshire-like thing they could do is to do nothing while everyone and their brother says they "have to" buy CSX now.

 

[Munger_Disciple]

4 hours ago, gfp said:

I don't think Berkshire is a seller of BNSF.  I think the most Berkshire-like thing they could do is to do nothing while everyone and their brother says they "have to" buy CSX now.

 

 

 

 

Well said!

[longterminvestor]

There is a large probability Mr. Buffett and other managers at BNSF have looked at the below map for many years, long before recent news broke on other competitors consolidating. 

 

I am no Rail Road expert, the below looks sexy however I choose to trust management - mostly because between me and Mr. Buffett, we control roughly 30% voting rights of Berkshire .  

 

Edited August 11, 2025 by longterminvestor

[bizaro86]

20 hours ago, gfp said:

I don't think Berkshire is a seller of BNSF.  I think the most Berkshire-like thing they could do is to do nothing while everyone and their brother says they "have to" buy CSX now.

 

Yeah. They could also wait and buy it in the next market panic. They'll always be the natural buyer, and they'll always be able to outbid anyone else.

 

Although the risk there is that the regulatory environment that exists now allowing rail mergers might not last forever.

[gfp]

I wonder if UNP needs Berkshire to bid for CSX in order to get their deal approved.  If Berkshire does nothing does the UNP deal get the green light?

[ratiman]

9 hours ago, longterminvestor said:

There is a large probability Mr. Buffett and other managers at BNSF have looked at the below map for many years, long before recent news broke on other competitors consolidating. 

 

I am no Rail Road expert, the below looks sexy however I choose to trust management - mostly because between me and Mr. Buffett, we control roughly 30% voting rights of Berkshire .  

 

 

That is an incredible map.

[gfp]

Who had "Bell Laboratories" on their bingo card as the next Berkshire Hathaway acquisition?  Come forward and claim your prize

 

https://www.pctonline.com/news/bell-laboratories-acquired-berkshire-hathaway/

[73 Reds]

7 minutes ago, gfp said:

Who had "Bell Laboratories" on their bingo card as the next Berkshire Hathaway acquisition?  Come forward and claim your prize

 

https://www.pctonline.com/news/bell-laboratories-acquired-berkshire-hathaway/

Evidently the deal closed over a week ago and Berkshire has not announced anything.  Strange.

[gfp]

8 minutes ago, 73 Reds said:

Evidently the deal closed over a week ago and Berkshire has not announced anything.  Strange.

 

I am sure it is not large enough to require a form 8K.

 

I'm encouraged that Warren made it out to Wisconsin (with Howie and Greg) for the announcement.  Just like the old days, give the old man the thrill of buying a private family owned company one more time!  Let him sign the check Greg!

[73 Reds]

2 minutes ago, gfp said:

 

I am sure it is not large enough to require a form 8K.

 

I'm encouraged that Warren made it out to Wisconsin (with Howie and Greg) for the announcement.  Just like the old days, give the old man the thrill of buying a private family owned company one more time!  Let him sign the check Greg!

Sure, but knowing the financial details would be nice, particularly because its been a while and it is strange to hear about the deal from the company being acquired 11 days later.

[gfp]

Here is another announcement - that Ben Bridge and Helzberg will be put under common management 

 

https://www.jckonline.com/editorial-article/berkshire-hathaway-ben-bridge/

[gfp]

2 minutes ago, 73 Reds said:

Sure, but knowing the financial details would be nice, particularly because its been a while and it is strange to hear about the deal from the company being acquired 11 days later.

 

You may be able to tease it out of the next 10Q depending on what else goes on this quarter but it is not unusual for a family to wish the proceeds of their private sale to remain private.

[Pauly]

1 hour ago, gfp said:

Who had "Bell Laboratories" on their bingo card as the next Berkshire Hathaway acquisition?  Come forward and claim your prize

 

https://www.pctonline.com/news/bell-laboratories-acquired-berkshire-hathaway/

 

Did anyone else think this was the famous Bell Labs that invented the transistor, and not the...rodent control company? What a confusingly named business. 

[gfp]

2 minutes ago, Pauly said:

 

Did anyone else think this was the famous Bell Labs that invented the transistor, and not the...rodent control company? What a confusingly named business. 

 

 

To be clear, if your guess was Nokia-owned Bell Labs and not the rodent control company you do not get a prize.